Analysts rate Carnival Corporation & plc (CCL:NYE) with a Buy, $28 Target

STA Research
by: STA Research

Analysts rate Carnival Corporation with a consensus Buy rating and a 12-month average target price of $28.73 per share.

Truist Securities rates Carnival Corporation at a Sell, and reduced the target from $20 to $17 on the company’s stock.

STA Research rates Carnival Corporation with a Hold rating, and sets the target price at $23.

Based on the Carnival Corporation & plc stock forecasts from 9 analysts, the average analyst target price for Carnival Corporation & plc is USD 28.73 over the next 12 months. Carnival Corporation & plc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Carnival Corporation & plc is Bullish, which is based on 12 positive signals and 4 negative signals. At the last closing, Carnival Corporation & plc’s stock price was USD 19.15. Carnival Corporation & plc’s stock price has changed by +1.50% over the past week, -3.27% over the past month and -32.26% over the last year.

Carnival Corporation & plc operates as a leisure travel company. The company operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia, and internationally. Carnival Corporation & plc was founded in 1972 and is headquartered in Miami, Florida.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peer, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on a free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Negative cash flow

The company had negative total cash flow in the most recent four quarters.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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